Student accommodation sector under intense pressure as
Back in August 2022, UK rental guarantor service Housing Hand warned of a coming tsunami of students struggling to find university accommodation. The warning resulted from a combination of unparalleled demand for university places and a lack of supply of suitable student homes. So, did the tidal wave of struggling students arrive as anticipated?
“Indeed it did – and probably in a more concentrated period that we anticipated, meaning that many students needed last-minute support in finding places to live. Fortunately, Housing Hand was well prepared with updated technology, so were generally able to manage good service levels. We saw a 20.6% uptick in accepted applicants and are still in tidy up mode on a number of late applicants who are not moving in until later.”
Graham Hayward, Chief Operating Officer, Housing Hand
Housing Hand has been working with students, landlords and universities in order to help alleviate housing-related pressure. Accommodation providers who are signed up to the company’s enhanced service are benefitting from tech-driven faster turnaround times. This is particularly the case with Housing Hand’s validation service, where service levels have moved from 48 hours to 48 seconds.
The company has also shed some light on which tenants are in need of rental guarantor services. The mix of applicants was evenly balanced this year, with the number of UK students applying for rental guarantors almost exactly equal to the number applying from overseas. Of those international students, a higher proportion was from outside Europe this year, as the impact of Brexit is felt within the higher education sector. And while Covid has not had a major impact in terms of travel and occupancy, China did see a moderation in applicants (though this was made up for by other nationalities).
For students applying for private rented sector accommodation, Housing Hand has noted that passing referencing has become more difficult this year.
“Typically, 50% of applicants pass referencing. However, this has dropped to around 40% now and looks set to go even lower. Essentially, given the current economic pressures, a higher number of applicants are failing referencing and require a suitable guarantor to progress their rental arrangements.”
Graham Hayward, Chief Operating Officer, Housing Hand
While Housing Hand is supporting a higher number of student applicants to access rental properties, accommodation providers are also stepping up. Housing Hand has seen a higher-than-expected take-up in commercial relationships with accommodation providers, with an increase in custom arrangements of 25.6% across all channels (including purpose-built student accommodation, build to rent homes and houses in multiple occupation).
They experienced an even higher level of increase in university relationships, with universities seeking bespoke arrangements to help inclusion for their students.
